I guess that depends on how your striping it.
For my method (which is to stain the candy cane stripes) it wouldn't work worth a darn on soaked wood. If the wood was full of kerosene or oil, the water base stains wouldn't sink in at all.
For those interested, my method is to take a roll of electrical tape (the black plastic kind) and using a razor cut in from the edge about 5/16 inch, down thru 5-8 layers.
Starting the tape at about a 30-40 degree angle from the rod axis I then proceed to wrap the tape, unrolling it as I go. After the first full turn I eyeball the untaped width.
If it looks good, I proceed to turn the rod and wrap the tape. If I don't like the spacing, I adjust the angle and try again. I personally think the width of the light and dark stripes should be about the same.
This wrapping is done while keeping an eye on the width of the untaped area and adjusting the tape angle so it all ends up about the same width from one end to the other.
By the way, I have had Very Poor luck getting masking tape to work. It just doesn't seem to stick to the wood well enough to keep the stain from wicking under it.
When it is fully wrapped, I apply a HARD pressure on the tape to make sure it is really stuck to the wood. Then I brush on the Walnut stain trying to just come up to the tape edge without really dousing it. In other words, the tape is a guide as much as a seal for the stain.
I apply three to five coats of stain for real contrast, let it dry and peel off the tape.
After removing the tape, I usually apply one coat of Walnut stain over the whole rod to get rid of the White color of the Hickory.
Now would be the time to soak the rod or finish it however you want.
I think some of the old timers used a flame to stripe their rods but I think that is too difficult to keep the pattern uniform and I can't sell myself on the idea that charring the outside of a already thin ramrod can really be good for it.